Leveraging Local Gov.s Buying Power: NEW MEXICOS ECONOMIC TRICKLE - - PowerPoint PPT Presentation
NEW MEXICO STATE AUDITOR TIMOTHY KELLER State Auditor Leveraging Local Gov.s Buying Power: NEW MEXICOS ECONOMIC TRICKLE OUT OFFICE OF THE STATE AUDITOR Combating Financial Fraud, Waste and Abuse GOVERNMENT ACCOUNTABILITY OFFICE (GAO)
TIMOTHY KELLER State Auditor
Combating Financial Fraud, Waste and Abuse
Financial Health Report Structural Job Killers
NEW MEXICO STATE AUDITOR
Agency Type # Agency Type #
State Agencies (exc. PED) 92 Housing Authorities* 45 Public Education Department
1 58 Regional Housing Authorities 3 Municipalities* 107 Soil & Water Districts 48 Counties 33 Special Districts 57 Schools and School Districts
92 39 Mutual Domestic Water Association 213 Higher Education
17 23 Regional Educational Coops* 11 District Attorneys 15 Workforce Dev. Boards 5 District Courts 14 Public Improvement Districts 11 Hospitals & Special Hospital Dist.* 9 Tax Increment Development Districts* 8 Councils of Governments* 7 Land Grants 31 Acequias and Ditches 27
Total Entities = 966 (*includes component units)
NEW MEXICO STATE AUDITOR
2017
OUT OF STATE SPENDING
Research indicates contract only $43 out of every $100 stays in the community from an out-of-state purchase.
In contast, for every $100 spent at a local business approximately $68 stays in the community.
(All industries)
* DID NOT REPORT DATA TO MAKE IN-STATE DETERMINATION $219,930,546
Out of State - All Industries , $525,323,880 , 22% In State - All Other Industries, $759,746,612 , 33% State Agencies, $323,283,838 , 31% Municipalities, $235,745,011 , 23% Schools, $205,551,770 , 20% Higher Education, $94,186,375 , 9% All Other Agency Types, $181,624,792 , 17% In State – Construction Industry, $1,040,391,785, 45%
Percentage of Industry Spending Going Out of State
Health & Medical IT Insurance & Benefits Food Services Equipment Maintenance Corrections A/E Legal
All Other Industries
*DID NOT REPORT DATA TO MAKE IN-STATE DETERMINATION $161,994,663
IT Health and Medical Food Services Insurance and Benefits Equipment Maintenance Corrections Architecture and Engineering Legal Other Industries Amount Going Out of State $29,122,727 $109,546,516 $30,925,302 $102,301,177 $58,196,266 $12,467,503 $23,519,609 $15,596,356 $2,542,817 $104,078,665 Amount Staying In State $5,992,607 $32,430,642 $15,679,469 $109,105,866 $90,912,872 $29,303,485 $72,578,409 $98,424,571 $96,484,766 $166,349,157 Amount Going Out of State Amount Staying In State
Health and Medical Industry: $109,546,516 Out of State 84% going to Colorado and Tennessee Insurance/Benefits Industry: $102,301,177 Out of State 72% Going to Missouri Corrections Industry: $23,519,609 Out of State 87% Going to Tennessee Equipment Industry: $58,196,266 Out of State 27% Going to Texas Information Technologies Industry: $29,652,440 Out of State 21% Going to Missouri
AGENCY OUT OF STATE OUT OF STATE % IN STATE IN STATE % NO RESPONSE TOTAL Albuquerque Bernalillo County Water Utility Association $456,842 2% $22,157,396 94% $991,481 $23,605,719 Albuquerque Housing Authority 0% $817,366 100% $817,366 Albuquerque Metro Arroyo Flood Control Authority $394,258 3% $13,671,409 97% $14,065,667 Albuquerque Public Schools $9,123,868 17% $42,642,529 80% $1,620,000 $53,386,397 Bernalillo County $70,057,911 59% $48,072,117 41% $431,506 $118,561,534 Bernalillo County Metropolitan Court 0% 0% $4,779,880 $4,779,880 Central New Mexico Community College $1,271,352 4% $32,091,157 96% $33,362,509 City of Albuquerque $10,742,696 13% $73,708,359 87% $84,451,055 Second Judicial District Court $69,300 41% $100,000 59% $169,300 University of New Mexico $14,162,869 39% $22,266,494 61% $36,429,362 UNM Behavioral Operations $18,176,273 57% $12,816,916 41% $648,905 $31,642,094 UNM Hospital $13,823,042 45% $11,202,803 36% $5,747,339 $30,773,184 UNM Medical Group $952,990 100% 0% $952,990 UNM Sandoval Regional Medical Center $235,548 100% 0% $235,548 Village of Los Ranchos de Albuquerque 0% $369,027 $369,027 GRAND TOTAL $139,466,949 $279,915,572 $14,219,111 $433,601,632
Corrections Food Services Health & Medical IT Equipment Telecom A/E Mainten. Insurance & Benefits Legal Other Industries Amount Going Out of State $6,203,292 $9,155,303 $55,010,880 $12,532,058 $30,626,768 $3,822,923 $4,077,845 $189,869 $636,866 $107,817 $15,636,970. Amount Staying In State $0 $194,064 $1,696,603 $930,478 $20,202,646 $8,191,500 $18,281,200 $5,133,361 $24,912,000 $7,235,482 $20,665,888.
Percentage of Industry Spending Going Out of State
Food Services Corrections Insurance & Benefits Health & Medical Equipment Maintenance Telecom A/E Legal
All Other Industries IT
*DID NOT REPORT DATA TO MAKE IN-STATE DETERMINATION $8,553,329
By Industry (Excludes Construction)
AGENCY OUT OF STATE OUT OF STATE % IN STATE IN STATE % NO RESPONSE TOTAL Santa Fe Public Schools $609,422 3% $22,068,157 97% $88,403 $22,765,982 Santa Fe County $7,714,194 60% $5,045,452 40% $12,759,646 City of Santa Fe $1,272,487 15% $6,983,161 85% $8,255,648 Santa Fe Solid Waste Management Agency $606,995 16% $3,208,793 84% $3,815,788 GRAND TOTAL $10,203,098 $37,305,563 $88,403 $47,597,064
*SANTA FE AREA INCLUDES: CITY OF SANTA FE, SANTA FE COUNTY, SANTA FE PUBLIC SCHOOLS, SANTA FE COMMUNITY COLLEGE, SANTA FE SOLID WASTE MANAGEMENT AGENCY, BUT SANTA FE COMMUNITY COLLEGE DATA FOR FY15 WAS NOT USABLE. THE OSA BELIEVES DATA GAPS EXIST FOR ALL OR MOST SANTA FE AGENCIES.
Percentage of Industry Spending Going Out of State
Food Services Corrections Equipment Uniforms Environmental Maintenance Water Rights & Maintenance A/E Leasing
All Other Industries
*DATA FOR SANTA FE COMMUNITY COLLEGE WAS NOT
DETERMINATION FOR THOSE CONTRACTS.
Corrections Food Services Uniforms Equipment Environmental Maintenance Water Maintenance and Rights Architecture and Engineering Lease All Other Industries Amount Going Out of State $1,200,000 $4,000,000 $1,401,560 $652,202 $60,000 $0 $0 $0 $0 $1,924,953 Amount Staying in State $0 $67,790 $841,651 $1,376,229 $1,219,141 $4,656,059 $1,797,497 $1,668,697 $900,500 $4,136,420 Amount Going Out of State Amount Staying in State
* Concerns about underreporting of non-competitive procurements
TYPE OF PROCUREMENT STATEWIDE OUT OF STATE REPORTED CONTRACT DOLLARS AWARDED % OF OUT OF STATE DOLLARS Competitive $ 310,192,183 59% Piggyback Contract $ 52,474,668 10% Emergency $ 45,167,307 9% Sole Source $ 42,835,843 8% Statewide Pricing Agreement $ 12,740,722 2% Exempt $ 11,034,922 2% Cooperative $ 9,817,112 2% Other $ 272,054 22% No response $ 40,713,610 8%
THE BAD: HEALTH CARE, IT AND FOOD SERVICE SPENDING IS PRIMARILY OUT OF STATE
More than half of contract dollars awarded to out of state vendors This represents a huge opportunity – hundreds of millions of dollars in government spending that could potentially nurture expansion in these industry sectors
THE UGLY: LITTLE TRANSPARENCY INTO 40% OF CONTRACT DOLLARS AWARDED
COMPETITIVE PROCUREMENT ACCOUNTS FOR ONLY 60%
THE GOOD: CONSTRUCTION, ARCHITECTURE AND ENGINEERING SPENDING IS OVERWHELMINGLY IN STATE
91% of contract dollars awarded to in state vendors 86% of reported contract dollars awarded through competitive procurement $1.1 billion retained locally If we deploy unspent funds into capital projects, this will give a great return on government spending